KKR REAL ESTATE FINANCE TRUS (KREF) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KREF - US48251K1007 - REIT
8.49 USD
0 (0%)
8.49 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to KREF. KREF was compared to 68 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. KREF scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. KREF has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year KREF has reported negative net income.
KREF had a positive operating cash flow in the past year.
Of the past 5 years KREF 4 years were profitable.
In the past 5 years KREF always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of -0.36%, KREF is doing worse than 70.59% of the companies in the same industry.
The Return On Equity of KREF (-1.90%) is worse than 72.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.36% | ||
| ROE | -1.9% | ||
| ROIC | N/A |
ROA(3y)-0.1%
ROA(5y)0.53%
ROE(3y)-0.63%
ROE(5y)2.49%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
KREF's Profit Margin has declined in the last couple of years.
In the last couple of years the Operating Margin of KREF has declined.
With a Gross Margin value of 29.76%, KREF perfoms like the industry average, outperforming 54.41% of the companies in the same industry.
In the last couple of years the Gross Margin of KREF has declined.
KREF does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 29.76% |
OM growth 3Y-50.23%
OM growth 5Y-29.01%
PM growth 3Y-62.88%
PM growth 5Y-41.56%
GM growth 3Y-20.56%
GM growth 5Y-6.79%
2. Health
2.1 Basic Checks
KREF does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for KREF has been reduced compared to 1 year ago.
The number of shares outstanding for KREF has been increased compared to 5 years ago.
The debt/assets ratio for KREF has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.04, we must say that KREF is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 0.04, KREF is doing good in the industry, outperforming 67.65% of the companies in the same industry.
The Debt to FCF ratio of KREF is 77.18, which is on the high side as it means it would take KREF, 77.18 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of KREF (77.18) is better than 69.12% of its industry peers.
KREF has a Debt/Equity ratio of 3.71. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 3.71, KREF is in the better half of the industry, outperforming 61.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.71 | ||
| Debt/FCF | 77.18 | ||
| Altman-Z | 0.04 |
ROIC/WACCN/A
WACC6.66%
2.3 Liquidity
KREF has a Current Ratio of 1.00. This is a normal value and indicates that KREF is financially healthy and should not expect problems in meeting its short term obligations.
KREF's Current ratio of 1.00 is fine compared to the rest of the industry. KREF outperforms 73.53% of its industry peers.
KREF has a Quick Ratio of 1.00. This is a normal value and indicates that KREF is financially healthy and should not expect problems in meeting its short term obligations.
KREF's Quick ratio of 1.00 is fine compared to the rest of the industry. KREF outperforms 73.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 97.46% over the past year.
Measured over the past years, KREF shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -34.56% on average per year.
KREF shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -24.70%.
The Revenue has been growing by 16.21% on average over the past years. This is quite good.
EPS 1Y (TTM)97.46%
EPS 3Y-55.99%
EPS 5Y-34.56%
EPS Q2Q%-108.11%
Revenue 1Y (TTM)-24.7%
Revenue growth 3Y26.7%
Revenue growth 5Y16.21%
Sales Q2Q%-31.54%
3.2 Future
KREF is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 45.02% yearly.
Based on estimates for the next years, KREF will show a decrease in Revenue. The Revenue will decrease by -9.03% on average per year.
EPS Next Y136.2%
EPS Next 2Y61.55%
EPS Next 3Y45.02%
EPS Next 5YN/A
Revenue Next Year-24.05%
Revenue Next 2Y-16.45%
Revenue Next 3Y-9.03%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
KREF reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Based on the Price/Forward Earnings ratio of 13.65, the valuation of KREF can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KREF is on the same level as its industry peers.
KREF's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 13.65 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, KREF is valued a bit cheaper than 73.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.24 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
KREF's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as KREF's earnings are expected to grow with 45.02% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y61.55%
EPS Next 3Y45.02%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.87%, KREF is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 12.91, KREF's dividend is way lower than its industry peers. On top of this 82.35% of the companies listed in the same industry pay a better dividend than KREF!
Compared to an average S&P500 Dividend Yield of 2.40, KREF pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.87% |
5.2 History
The dividend of KREF decreases each year by -2.88%.
KREF has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)-2.88%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
The earnings of KREF are negative and hence is the payout ratio. KREF will probably not be able to sustain this dividend level.
DP-382.49%
EPS Next 2Y61.55%
EPS Next 3Y45.02%
8.49
0 (0%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners61.74%
Inst Owner Change1.8%
Ins Owners1.71%
Ins Owner Change3.36%
Market Cap557.62M
Revenue(TTM)478.18M
Net Income(TTM)-23.32M
Analysts80
Price Target10.46 (23.2%)
Short Float %6.95%
Short Ratio4.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.87% |
Yearly Dividend1.49
Dividend Growth(5Y)-2.88%
DP-382.49%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-39.84%
Min EPS beat(2)-129.41%
Max EPS beat(2)49.72%
EPS beat(4)2
Avg EPS beat(4)-67.34%
Min EPS beat(4)-233.84%
Max EPS beat(4)49.72%
EPS beat(8)5
Avg EPS beat(8)-83.61%
EPS beat(12)7
Avg EPS beat(12)-53.27%
EPS beat(16)10
Avg EPS beat(16)-47.98%
Revenue beat(2)0
Avg Revenue beat(2)-12.99%
Min Revenue beat(2)-18.35%
Max Revenue beat(2)-7.64%
Revenue beat(4)0
Avg Revenue beat(4)-10.1%
Min Revenue beat(4)-18.35%
Max Revenue beat(4)-1.64%
Revenue beat(8)1
Avg Revenue beat(8)-6.32%
Revenue beat(12)4
Avg Revenue beat(12)30.17%
Revenue beat(16)8
Avg Revenue beat(16)51.85%
PT rev (1m)-9.89%
PT rev (3m)-9.89%
EPS NQ rev (1m)-17%
EPS NQ rev (3m)0%
EPS NY rev (1m)-21.3%
EPS NY rev (3m)-30.38%
Revenue NQ rev (1m)-10.5%
Revenue NQ rev (3m)-13.34%
Revenue NY rev (1m)-5.73%
Revenue NY rev (3m)-8.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 13.65 | ||
| P/S | 1.17 | ||
| P/FCF | 9.24 | ||
| P/OCF | 7.55 | ||
| P/B | 0.45 | ||
| P/tB | 0.45 | ||
| EV/EBITDA | N/A |
EPS(TTM)-0.03
EYN/A
EPS(NY)0.62
Fwd EY7.33%
FCF(TTM)0.92
FCFY10.82%
OCF(TTM)1.12
OCFY13.25%
SpS7.28
BVpS18.72
TBVpS18.72
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.36% | ||
| ROE | -1.9% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 29.76% | ||
| FCFM | 12.62% |
ROA(3y)-0.1%
ROA(5y)0.53%
ROE(3y)-0.63%
ROE(5y)2.49%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-50.23%
OM growth 5Y-29.01%
PM growth 3Y-62.88%
PM growth 5Y-41.56%
GM growth 3Y-20.56%
GM growth 5Y-6.79%
F-Score4
Asset Turnover0.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.71 | ||
| Debt/FCF | 77.18 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 613.15% | ||
| Cap/Sales | 2.83% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1 | ||
| Quick Ratio | 1 | ||
| Altman-Z | 0.04 |
F-Score4
WACC6.66%
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)97.46%
EPS 3Y-55.99%
EPS 5Y-34.56%
EPS Q2Q%-108.11%
EPS Next Y136.2%
EPS Next 2Y61.55%
EPS Next 3Y45.02%
EPS Next 5YN/A
Revenue 1Y (TTM)-24.7%
Revenue growth 3Y26.7%
Revenue growth 5Y16.21%
Sales Q2Q%-31.54%
Revenue Next Year-24.05%
Revenue Next 2Y-16.45%
Revenue Next 3Y-9.03%
Revenue Next 5YN/A
EBIT growth 1Y-291.7%
EBIT growth 3Y-36.94%
EBIT growth 5Y-17.51%
EBIT Next Year-35.74%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-61.32%
FCF growth 3Y1.66%
FCF growth 5Y7.41%
OCF growth 1Y-52.65%
OCF growth 3Y2.03%
OCF growth 5Y7.65%
KKR REAL ESTATE FINANCE TRUS / KREF FAQ
What is the fundamental rating for KREF stock?
ChartMill assigns a fundamental rating of 4 / 10 to KREF.
Can you provide the valuation status for KKR REAL ESTATE FINANCE TRUS?
ChartMill assigns a valuation rating of 4 / 10 to KKR REAL ESTATE FINANCE TRUS (KREF). This can be considered as Fairly Valued.
How profitable is KKR REAL ESTATE FINANCE TRUS (KREF) stock?
KKR REAL ESTATE FINANCE TRUS (KREF) has a profitability rating of 2 / 10.
How financially healthy is KKR REAL ESTATE FINANCE TRUS?
The financial health rating of KKR REAL ESTATE FINANCE TRUS (KREF) is 5 / 10.
Can you provide the expected EPS growth for KREF stock?
The Earnings per Share (EPS) of KKR REAL ESTATE FINANCE TRUS (KREF) is expected to grow by 136.2% in the next year.